Federal International (2000) (BDU) H1 2024 earnings summary

Executive summary

• H1 revenue fell 15.0% YoY to S$24.366m; net profit rose 98.6% to S$3.348m, supported by S$4.520m of disposal gains.

• Profit attributable to owners was S$3.247m versus a S$3.684m loss in H1 2023; basic and diluted EPS were 2.31 cents.

Financial highlights

• Gross profit declined 19.9% to S$6.343m; gross margin eased to 26.0% from 27.6% YoY.

• Other income rose to S$5.492m from S$806,000, mainly including S$4.520m in disposal gains and S$169,000 in dividend income.

• Finance costs fell 33.1% to S$305,000; net impairment loss on financial assets was S$1.116m versus a S$32,000 net writeback.

• Operating cash flow was S$754,000; cash and cash equivalents declined S$3.489m to S$6.580m.

Outlook and guidance

• Flowline-control and fire-protection distribution demand was expected to remain consistent into H2 2024; procurement activity was low due to a lack of secured contracts.

• Strategic partners will be engaged to pursue oil-and-gas opportunities in Southeast Asia and expand services and business segments.